Future Ventures has already filed a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for the proposed issue.

Carved off as a separate company with initial capital of Rs 250 crore, Future Ventures has received Rs 325 crore funding from parent Pantaloon.

Future Ventures is expected to invest in new areas and the real estate projects of the Future group. FVIL is also expected to invest and execute the Future group's

joint ventures and investments, which were so far done by the listed entity Pantaloon, sources in the group said.

According

to sources, FVIL is in talks with a couple of food and grocery chains in East and South India for an acquisition, which is expected to be completed by the third quarter of this year.

Though the $425 million Indivision Fund, managed by Future Group's financial arm Future Capital, has picked up stakes in several consumer-focused

companies, the curbs on foreign direct investments in the retail sector have deterred it from investing in retail companies.

Investors

can expect a series of IPOs from Future Group as Biyani has expressed willingness to spin off the group's various ventures. Pantaloon, India's largest listed retailer, owns Pantaloon, Central, Brand Factory, Big Bazaar and Food Bazaar.

The IPO comprises a net issue to the public of 2,660 million equity shares and a reservation of up to 50 million shares for employees and 25